Disallowance u/s 14A deleted as interest free own funds exceeded investment: ITAT Mumbai

Bank of Nova Scotia Vs Assistant Director of Income Tax (ITAT Mumbai) ITAT Mumbai held that disallowance made u/s. 14A of the Income Tax Act read with rule 8D deleted as tax free funds were more than investment made on which exempt income was earned. Facts- During the course of assessment, AO noticed that assessee has earned interest income of Rs.2,77,57,534/- from 1997- 1998 series of NABARD Bonds which has been claimed as exempt from income tax u/s 10(15) (iv) (h) of the Act. After referring the tax free funds the assessee submitted that no disallowance u/s 14A should have been However, the ...